Ikea outsourcing. Scandalous?

Discussion in 'Economics' started by Debaser82, Apr 12, 2011.

  1. Pekelo


    If you mean that a Dutch corporation outsourced a factory into the US, thus making the USA officially a 3rd world country, then yes, it is scandalous...

    ...and by scandalous we mean it is the sign of the times.
  2. Ikea is Swedish not Dutch.

    Swedish people should be up in arms over the slave sweatshops in the USA, it deprives their citizens of a living wage.

    Human rights abuse.
  3. The Dutch holding company only holds the royality rights and franchise IP. The stores are owned by a Liechtenstein trust that's controlled by the founder's family.
  4. You think foreign companies shouldnt be allowed to open factories in the US?

    You think minimum wage should be raised?
  5. Pekelo


    Me thinks you are missreading my posts. You usually outsource to a country where the wages are much lower than in the original country. If companies outsource to the USA, that means the US is hitting the standard of 3rd world countries.

    Also $18 per hour is not minimum wage...

    Yeah, that's what I learnt when I was a kid, then I grew up and learnt to use Google and Wiki:

    "The groups of companies that form IKEA are all controlled by INGKA Holding B.V., a Dutch corporation, which in turn is controlled by a tax-exempt, not-for-profit Dutch foundation."

  6. Ok.

    But isnt this what policy makers are trying to achieve.

    To give US new found attractiveness for foreign investors to invest and kickstart an export led recovery.
  7. Pekelo


    There can be other reasons that makes a factory in the US profitable:

    --huge taxbreaks
    --if there are many stores and transportation costs are high, it can be cheaper to make products locally even if wages are higher than in China
    --image (made in USA)
    --plenty of cheap raw material available